NEEDS
This account is designed for money you plan to keep instead of spend right away.
Savings Account
Active Income
"I will save $25 every week."
This statement demonstrates which part of SMART?
Measurable
A student owns an $800 laptop, has $400 in savings and is in debt $200. What is the student's Net Worth?
$1,000
This often causes people to spend money emotionally without planning or thinking about future consequences.
Impulse Purchase
Financially fit people keep money set aside for something they cannot predict. This is called an...
Emergency Fund
Passive Income
"I will save for a new laptop."
This statement demonstrates which part of SMART?
Specific
Emily earns $600 selling T-shirts. She spends $350 on expenses to make more. The $250 remaining is her what...
Profit
This financial tool helps people decide where their money should go before they spend it.
Budget
Money kept in this type of account is usually easiest to access when paying bills or buying groceries.
Checking Account
A bakery sells all of its cakes in one day, earning $850 in sales. Before they learn how much profit was made, they have to buy more cake pans, butter, flour, sugar, and other goods. These are examples of what?
Expenses
"I will save $500 by December 1st."
Which part of SMART is demonstrated?
Time-bound
Brandon receives his first paycheck. Some of his money is taken out before he gets it.
Later, he buys a new hoodie from the mall and pays more than what was on the price tag.
Name both types of taxes.
Income Tax and Sales Tax
Someone who practices this can enjoy what they already have instead of constantly wanting something new.
Contentment
This is money your bank pays you simply for keeping your money there.
Interest
This is one way companies reward people who own part of their business.
Dividend
Emma wants to save for college. She plans to use birthday money, babysitting jobs, and part of her weekly allowance.
Which part of S.M.A.R.T. is demonstrated?
Achievable
A brand-new car loses thousands of dollars in value during the first few years after it is purchased.
What happened to the car's value?
Depreciation
According to the 50/30/20 Rule, this category often includes things you enjoy but could live without.
WANTS
A student puts birthday money into a checking account. Later, they use a debit card to buy a new backpack.
Name both bank transactions, in order.
Deposit and Withdrawal
A family buys a house for $300,000. Ten years later, it's worth $425,000. What happened to the home's value?
Appreciation
"I will save up $1,000 from my car washing service to buy a new dirt bike so I can go riding with my friends."
Which S.M.A.R.T. letters are missing?
Measurable and Time-bound
One financial term describes all the money a business earns.
Another term describes what remains after expenses are paid.
Name both financial terms.
Revenue and Profit